Industry Analysts Just Made A Huge Upgrade To Their Stoke Therapeutics, Inc. (NASDAQ:STOK) Revenue Forecasts

Stoke Therapeutics, Inc. (NASDAQ:STOK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Stoke Therapeutics will make substantially more sales than they'd previously expected. The stock price has risen 5.2% to US$13.05 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the nine analysts covering Stoke Therapeutics are now predicting revenues of US$22m in 2025. If met, this would reflect a substantial 31% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$2.48 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$16m and losses of US$2.53 per share in 2025. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Stoke Therapeutics

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Stoke Therapeutics' revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2025 being well below the historical 63% p.a. growth over the last five years. Compare this to the 561 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 21% per year. Factoring in the forecast slowdown in growth, it looks like Stoke Therapeutics is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Stoke Therapeutics is moving incrementally towards profitability. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Stoke Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Stoke Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.